The International Monetary Fund, IMF, is set to approve a $54 million emergency fund for Malawi as the southern African country struggles with acute forex shortages.
Malawi, which is experiencing chaotic queues at fuel stations that are running dry due to a lack of foreign currency, would be the first African country to receive special IMF emergency financing to deal with the global inflation crisis, according to a Reuters report.
Recall that Ukraine received $1.3 billion under the same new programme, known as the “Food Shock Window”, earlier this month.
The IMF said last week it had discussed Malawi’s request for support under the emergency programme and that the board would consider it “as soon as possible”. The Food Shock Window was launched at the end of last month to help countries with balance of payments problems.
Malawi desperately needs funds to import fuel and subsidized fertilizer, the finance ministry source said, as pressure on the government grows ahead of the rainy season when farmers will need the fertilizer.